Correlation Between Talanx AG and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both Talanx AG and WESANA HEALTH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Talanx AG and WESANA HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and WESANA HEALTH HOLD, you can compare the effects of market volatilities on Talanx AG and WESANA HEALTH and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Talanx AG with a short position of WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and WESANA HEALTH.
Diversification Opportunities for Talanx AG and WESANA HEALTH
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Talanx and WESANA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD and Talanx AG is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Talanx AG are associated (or correlated) with WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of Talanx AG i.e., Talanx AG and WESANA HEALTH go up and down completely randomly.
Pair Corralation between Talanx AG and WESANA HEALTH
Assuming the 90 days horizon Talanx AG is expected to generate 41.94 times less return on investment than WESANA HEALTH. But when comparing it to its historical volatility, Talanx AG is 40.72 times less risky than WESANA HEALTH. It trades about 0.11 of its potential returns per unit of risk. WESANA HEALTH HOLD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2.60 in WESANA HEALTH HOLD on October 13, 2024 and sell it today you would lose (2.45) from holding WESANA HEALTH HOLD or give up 94.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| Talanx AG |
| WESANA HEALTH HOLD |
Talanx AG and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and WESANA HEALTH
The main advantage of trading using opposite Talanx AG and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, WESANA HEALTH can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| Talanx AG vs. Hochschild Mining plc | Talanx AG vs. Siemens Healthineers AG | Talanx AG vs. Acadia Healthcare | Talanx AG vs. BRAGG GAMING GRP |
| WESANA HEALTH vs. Superior Plus Corp | WESANA HEALTH vs. NMI Holdings | WESANA HEALTH vs. SIVERS SEMICONDUCTORS AB | WESANA HEALTH vs. Talanx AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |